Tax Penalties and Audits Dont Correlate With Income Levels

For both consumers and corporations, the lower the income, the higher the rate of tax penalties, according to new research.

The research, from the personal finance social network WalletHub, found that audited consumers who earn less than $200,000 a year pay 83 percent higher penalties as a percentage of their adjusted gross income than people making more than $200,000.

Similarly, audited corporations that earn between $250,000 and $1 million pay more than 11 times higher penalties, as a percentage of their adjusted gross income, than corporations earning between $10 million and $50 million, according to WalletHubs research.

Conversely, individuals who make $10 million or more are 3,933 percent more likely to be audited than those who make between $25,000 and $100,000.

Individual taxpayers and small businesses have a 1 percent chance of being audited, compared to 15.80 percent for large corporations.

Individual audit rates have declined in recent years, while corporate audit rates have increased, the report noted.

Culture is pivotal because it plays a key role in determining how firms make decisions to achieve their business objectives. Culture is at the heart of competitive advantage today; this is particularly the case for investment firms where people and their judgments are the chief assets. A firm’s culture creates the context and incentive structure to support an investment process based on a longer time horizon, a collaborative team approach that can integrate diverse insights and robust risk management. Culture also underpins business decisions, including talent management, strategy and capacity management. A strong culture in investment management firms is a requirement for sustainable alpha-generation.